- The blog compares 7 top term insurance plans in India based on coverage, claim ratios, and standout features.
- Term insurance provides financial protection to your family in case of your death during the policy term.
- The right plan depends on your income, liabilities, family needs, budget, and required coverage.
- Compare the sum assured, premium, policy term, riders, exclusions, and claim process before buying.
- Buying term insurance at a younger age generally will help you to get higher coverage at a lower premium.
Life is uncertain, but the financial responsibilities of a breadwinner are real and unavoidable.
According to Macrotrends, India's crude death rate is 7.6 deaths per 1,000 people for 2026. An unexpected death during a person's earning years can leave a family struggling with daily expenses, outstanding loans, and future financial goals.
This is where term insurance acts as a financial safety net by providing a fixed sum assured to the nominee if the policyholder dies during the policy term. The best term insurance plan in India should offer adequate life cover, affordable premiums, suitable riders, flexible payout options, and reliable claim support.
This guide compares some of the best term insurance plans to help you find suitable financial protection for your family's future.
7 Best Term Insurance Plans in India
This table provides a quick overview of some of the best term insurance plans in India.
| Term Insurance Plan | Insurer Name | Death Claim Paid Ratio | Maximum Coverage Age | Standout Feature |
|---|---|---|---|---|
| Smart Term Plan Plus | Axis Max Life Insurance | 99.8% | Up to 85 or 100 years, depending on the chosen variant | 7 plan variants and Special Exit Value of up to 200% of eligible premiums paid |
| Click 2 Protect Super | HDFC Life Insurance | 98.66% | Up to 85 years | Choice of level, increasing, or decreasing life cover |
| iProtect Smart Plus | ICICI Prudential Life Insurance | 99.3% | Coverage available up to age 99 under eligible options | Optional cover for up to 60 critical illnesses |
| Sampoorna Raksha Promise | Tata AIA Life Insurance | 99.45% | Up to 100 years of age under eligible options | Joint-life options and pregnancy-related premium benefits for women |
| eTouch II | Bajaj Life Insurance | 99.33% | Up to 99 years, depending on the chosen option | Premium Holiday and Auto Cover Continuance Benefit |
| Super Term Plan | Aditya Birla Sun Life Insurance | 98.65% | Up to age 85, depending on the selected plan option | Future Proofing Benefit to increase cover after major life events |
| eShield Next | SBI Life Insurance | 98.83% | Up to age 79 under standard options and age 100 under the Whole Life option | Increasing Cover and Future Proofing Benefit |
Disclaimer: The Death Claim Paid Ratios mentioned above are based on data published on the respective insurers' official websites and can change over time. These ratios represent the insurer's overall claim performance and do not guarantee the approval of an individual claim.
What is a Term Insurance Plan?
A term insurance plan is the simplest type of life insurance that provides financial protection for a fixed period, known as the policy term. If the policyholder dies during this period, the insurance company pays the sum assured to the nominee.
This amount helps the family to manage expenses such as daily living costs, children's education, home loans, and other financial liabilities.
Unlike investment or savings plans, a term insurance plan offers pure life cover. Since it does not include an investment component, it provides a high sum assured at an affordable premium.
7 Top Term Insurance Policies in India
Here are the 7 top term insurance policies in India:
1Axis Max Life Smart Term Plan Plus
- Plan Type: 7 plan variants to suit different protection and financial needs.
- Plan Variants: Regular Cover, Rebalancing Cover, Early ROP Plus, Smart Cover, Whole Life Cover, Return of Premium, and Income Protection Cover.
- Coverage Period: Offers life insurance coverage up to 100 years of age under the Whole Life Cover variant.
- Key Benefits: Offers an inbuilt terminal illness benefit, Insta Payment on Claim Intimation, Cover Continuance Benefit, and flexible claim payout options. Eligible policyholders can also receive up to 200% of total premiums paid as Special Exit Value, subject to applicable conditions.
- Benefits for Women: Female policyholders receive a flat 15% premium discount and can opt for maternity cover against specified pregnancy-related complications.
- Optional Riders: Critical Illness and Disability Rider, Waiver of Premium Plus Rider, and Accidental Death and Dismemberment Rider.
- Best Suited For: Individuals seeking highly customisable term insurance with multiple coverage options, long-term protection, return-of-premium choices, and additional benefits for women.
2HDFC Life Click 2 Protect Super
- Plan Type: Term insurance plan with three options—Life, Life Plus, and Life Goal.
- Minimum Entry Age: 18 years.
- Maximum Entry Age: Up to 84 years, depending on the chosen plan option.
- Minimum Sum Assured: Rs 5,000, subject to the selected option and eligibility.
- Maximum Sum Assured: No fixed maximum limit in most cases; approval depends on the insurer's underwriting policy.
- Coverage Period: The policy can provide coverage up to 85 years of age, depending on the selected option.
- Key Benefits: Offers level, increasing, or decreasing life cover; optional return of premium; accidental death benefit; terminal illness benefit; waiver of premium; spouse cover; and flexible death benefit payouts.
- Best Suited For: Individuals seeking flexible and customisable life cover that can adapt to changing financial needs and life stage
3ICICI Prudential iProtect Smart Plus
- Plan Type: A term insurance plan that provides life cover with optional protection against critical illnesses and accidental death.
- Entry Age: Starts from 18 years, while the maximum entry age depends on the chosen coverage option and policy terms.
- Maximum Coverage Age: Up to 99 years of age under eligible options.
- Key Benefits: Provides high life cover at an affordable premium, an inbuilt terminal illness benefit, flexible claim payout options, and a 12-month premium break option under applicable conditions.
- Critical Illness Cover: Offers optional coverage of up to Rs 1.5 crore for 60 critical illnesses, including cancer, heart attack, and organ failure.
- Accidental Death Benefit: Policyholders can opt for additional accidental death cover of up to Rs 3 crore, subject to applicable policy conditions.
- Benefits for Women: Female policyholders can receive a flat 15% discount on life cover premiums, subject to applicable terms.
- Best Suited For: Individuals looking for flexible term insurance with optional critical illness and accidental death protection alongside basic life cover
4Tata AIA Sampoorna Raksha Promise
- Plan Type: Pure-risk individual term insurance plan with 4 benefit options—Life Promise, Life Promise Plus, Joint Life Promise, and Joint Life Promise Plus.
- Minimum Entry Age: 18 years.
- Maximum Entry Age: Up to 65 years, depending on the selected benefit option.
- Minimum Sum Assured: Rs 5 lakh.
- Maximum Sum Assured: No fixed upper limit, subject to the insurer's underwriting policy.
- Coverage Period: Offers whole-life coverage up to 100 years of age under eligible options.
- Key Benefits: Offers four death benefit options, an inbuilt terminal illness benefit with 50% of the effective sum assured paid on eligible diagnosis, waiver of future premiums after an accepted terminal illness claim, joint-life coverage for spouses, flexible lump-sum or instalment payouts, and the option to defer premiums for up to 12 months through the FlexiPay Benefit.
- Benefits for Women: Female policyholders can get a 15% lower premium, a premium holiday of up to 12 months during pregnancy under applicable conditions, and additional women-specific benefits.
- Additional Features: Offers an instant payout of Rs 3 lakh on claim intimation for eligible policies, life-stage cover enhancement, top-up sum assured, and an option to transfer legacy cover to a child under the family plan option.
- Best Suited For: Individuals and couples seeking long-term, flexible life protection with joint-life coverage, terminal illness benefits, and whole-life cover options.
5Bajaj Life eTouch II
- Plan Type: Individual non-linked, non-participating term insurance plan with 3 plan variants—Life Shield, Life Shield Plus, and Life Shield ROP.
- Plan Variants: Life Shield, Life Shield Plus, and Life Shield Return of Premium (ROP).
- Minimum Entry Age: 18 years.
- Maximum Entry Age: Up to 65 years (55 years for the Pay Till 60 option).
- Minimum Sum Assured: Rs 50 lakh.
- Maximum Sum Assured: No upper limit, subject to the insurer's underwriting policy.
- Coverage Period: Offers life cover up to 99 years of age under eligible variants.
- Key Benefits: Provides death and terminal illness cover, flexible premium payment options, accidental death benefit under the Life Shield Plus variant, return of premiums under the Life Shield ROP variant, flexible death benefit payout (lump sum, monthly income, or both), auto cover continuance benefit, and early exit value under eligible variants.
- Best Suited For: Individuals looking for flexible term insurance with optional return of premium, accidental death cover, and long-term protection up to 99 years.
6Aditya Birla Sun Life Insurance Super Term Plan
- Plan Type: Pure-risk term insurance plan with 3 coverage options—Level Cover, Increasing Cover, and Level Cover with Future Proofing Benefit.
- Minimum Entry Age: 18 years.
- Maximum Entry Age: Up to 65 years.
- Coverage Period: Policy term can extend up to 55 years, with a maximum maturity age of 85 years.
- Key Benefits: Provides death benefit, inbuilt terminal illness benefit, waiver of future premiums in case of terminal illness or accidental total and permanent disability, flexible death benefit payouts, and life-stage benefits to increase coverage after major events such as marriage, childbirth, or taking a home loan.
- Additional Features: Offers Early Exit Value, cover continuance benefit to defer premium payments for up to 12 months, instant claim payment, and health management services.
- Optional Riders: Accidental Death Benefit Rider Plus, Accidental Death and Disability Rider, Critical Illness Rider, Surgical Care Rider, Hospital Care Rider, and Waiver of Premium Rider.
- Best Suited For: Individuals seeking flexible term insurance with level or increasing coverage and additional protection against terminal illness, disability, and critical illness.
7SBI Life eShield Next
- Plan Type: A pure-risk term insurance plan offering three coverage options—Level Cover, Increasing Cover, and Level Cover with Future Proofing Benefit.
- Entry Age: 18 to 65 years. For Regular Pay, the maximum entry age is 60 years.
- Minimum Sum Assured: Rs 50 lakh for online purchases.
- Maximum Sum Assured: No fixed upper limit, subject to the insurer's underwriting rules.
- Coverage Period: Minimum policy term starts from 5 years. Coverage can extend up to 79 years of age under standard options and 100 years under the Whole Life option.
- Key Benefits: The plan includes an inbuilt terminal illness benefit, flexible death benefit payout options, increasing cover to protect against inflation, and the option to increase coverage after major life events.
- Optional Rider: The SBI Life Accident Benefit Rider provides additional protection against accidental death and accidental disability.
- Best Suited For: Individuals seeking straightforward term insurance with long-term coverage, inflation-linked cover increases, and the flexibility to enhance protection after major life events.
- Return of Premium: Eligible premiums are returned if you survive the policy term.
- Special/Early Exit Value: You can exit the policy during a specified period and receive an eligible value.
- Increasing Cover: Your life cover automatically increases according to the policy terms.
- Life-Stage Enhancement: You can increase your coverage after major life events such as marriage or childbirth.
- Whole-Life Cover: Coverage continues up to an advanced age, often 99 or 100 years.
- Income Payout: The death benefit is paid as regular income instead of only as a lump sum.
Who Should Buy Term Insurance?
Term insurance is suitable for anyone whose family depends on their income or who has financial responsibilities that could continue after their death. You should consider buying term insurance if you:
- Have a spouse, children, parents, or other financial dependents.
- Have outstanding liabilities such as a home loan, personal loan, or other major debts.
- Want to secure future goals such as your child's education or marriage.
- Are the primary or sole earning member of your family.
- Are self-employed or a business owner and want to protect your family's finances against income loss.
- Want high life cover at a relatively affordable premium.
Factors to Compare Before Buying a Term Plan
Here are some of the key factors to compare before buying a term plan:
- Sum Assured: A higher sum assured provides greater financial protection but can also increase the premium. Choose an amount based on your income, debts, and family's future needs.
- Premium Amount: Premiums differ based on age, health, coverage, and policy term. Compare the cost without compromising on essential coverage.
- Policy Duration: A longer policy term provides protection for more years but can affect the premium. Choose a term that covers your major financial responsibilities.
- Claim Settlement Ratio: A higher ratio indicates that the insurer has settled a greater percentage of claims received in the specified period.
- Solvency Ratio: A higher solvency ratio generally indicates a stronger financial position to meet long-term obligations.
- Available Riders: Riders increase protection against specific risks such as critical illness, accidental death, or disability, but can increase the premium.
- Payout Options: Some plans pay the death benefit as a lump sum, regular income, or both. Choose based on how your family is likely to manage the money.
- Policy Exclusions: More exclusions can limit coverage. Check situations where the insurer will not pay a claim before choosing a plan.
- Premium Payment Options: Plans can offer regular, limited, or single-pay options. Choose one based on your income and payment capacity.
- Maximum Coverage Age: A higher maximum coverage age provides protection for a longer period but can result in a higher premium.
- Return of Premium: This option returns eligible premiums if you survive the policy term but usually costs more than a regular term plan.
- Claim Process: A simple and accessible claim process can make it easier for your nominee to submit documents and receive the benefit.
Common Inclusions and Exclusions in Term Insurance
Here are the inclusions and exclusions of term insurance plans in India:
What is Covered
- Death due to natural causes
- Death due to illness
- Accidental death
- Terminal illness, if included in the plan
- Critical illness, if covered through a rider
What is Not Covered
- Suicide during the initial exclusion period
- Death caused by fraud or false information
- Death due to specific excluded activities mentioned in the policy
- Death when the policy has lapsed due to unpaid premiums
- Claims that do not meet the policy terms and conditions
Note: Coverage and exclusions can differ depending on the insurer and policy terms.
Why Should You Buy Term Insurance?
Term insurance provides financial protection to your family if you die during the policy term. Here are the key reasons to buy it:
Financial Security for Your Family
The death of an earning member can affect a family's ability to manage daily expenses, loans, children's education, and other financial goals. Term insurance provides a death benefit to the nominee that helps in managing the expenses in your absence.
Income Replacement
If your family depends on your income, a term insurance payout can act as a financial replacement for the income lost after your death. This can help your family maintain its lifestyle and meet regular household expenses.
High Life Cover at an Affordable Premium
Term insurance is generally more affordable than other types of life insurance because it primarily focuses on providing life cover without an investment component. This allows you to get a relatively high sum assured at a lower premium.
Flexible Payout Options
Depending on the plan, the nominee can receive the death benefit as a lump sum, regular income, or a combination of both. A lump-sum payout can help to manage large expenses and outstanding loans, while regular payouts can support everyday household expenses.
Additional Protection Through Riders
You can enhance your term insurance coverage by adding optional riders, such as critical illness, accidental death, or disability cover. These riders provide additional financial protection against specific risks, usually at an extra premium.
Helps Cover Outstanding Loans
If you have a home loan or other major debts, your family could be responsible for managing these financial obligations after your death. Adequate term insurance coverage will help you to repay outstanding liabilities without putting additional financial pressure on your family.
Protects Long-Term Financial Goals
A term insurance payout can help your family to continue working towards important financial goals, such as children's higher education, marriage, or long-term financial security, even if you are no longer there to provide an income.
Tax Benefits
Premiums paid for eligible term insurance policies can qualify for tax deductions under Section 80C of the Income Tax Act, subject to applicable conditions and the chosen tax regime. The death benefit received by the nominee is generally tax-exempt under Section 10(10D), subject to prevailing tax laws and policy conditions.
Return of Premium Option
Some term insurance plans offer a Return of Premium option. If you survive the policy term, eligible premiums are returned according to the policy conditions. However, these plans generally have higher premiums than regular term insurance plans.
Why Should You Buy Term Insurance Early?
If you buy term insurance early then you can get higher life cover at a lower premium as younger people generally have fewer health risks. Once purchased, the premium usually remains fixed throughout the policy term, which can result in significant long-term savings.
It also ensures that your family gets financial protection early, especially as responsibilities such as marriage, children, and loans increase over time.
Term Insurance vs Other Life Insurance Plans
| Parameter | Term Insurance | Other Life Insurance Plans |
|---|---|---|
| Purpose | Pure financial protection | Protection with savings or investment |
| Premium | Generally lower | Generally higher |
| Life Cover | Higher cover at an affordable premium | Lower cover for a similar premium |
| Maturity Benefit | Usually not available | Generally available, depending on the plan |
| Returns | No investment returns | Can offer savings or market-linked returns |
| Best For | Protecting family's financial future | Insurance with savings or investment goals |
Conclusion
To conclude, term insurance provides financial protection to your family in your absence. The right plan should offer sufficient coverage at an affordable premium and match your family's future financial needs. Compare different plans, benefits, policy terms, and exclusions before making a decision.
FAQs
The best term insurance plans should offer sufficient life cover at an affordable premium. Compare coverage, policy term, riders, and claim settlement record before choosing.
The best term insurance policy in India depends on your age, income, budget, and family needs. Choose a plan that offers adequate coverage and suitable benefits at an affordable premium.
A term insurance plan provides life coverage for a fixed period. If the insured person dies during the policy term, the nominee receives the death benefit.
Anyone with financial dependents, such as a spouse, children, or parents, should consider buying term insurance.
Your coverage should depend on your income, loans, future expenses, and the financial needs of your family.
Yes, you can add riders for critical illness, accidental death, disability, and other risks by paying an additional premium.
In a regular term plan, no maturity benefit is paid. However, return-of-premium plans return eligible premiums if you survive the policy term.
It is generally better to buy term insurance at a younger age because premiums are usually lower for young and healthy individuals.
